With the development of technology, the banking sector has been making impressive advancements to remain persistent in the future.
FREMONT, CA: The face of modern banking is changing with the transformation in digitalization. To stay consistent, cooperative banks are adapting technology faster, providing business opportunities for leading information technology service providers. The legacy banks have been a weak spot in the financial services landscape, which is carefully monitored and controlled by banks. After banks were mainstreamed and brought under regulatory supervision, improvements of banks have been steady over time.
In an era of smartphones, high-speed connectivity, artificial intelligence, and machine learning, innovation is undoubtedly the key to survival, but the shift to 'digital' is expensive and comes with its own set of challenges. The journey of digitalization has already started, and the initial phase of implementing core banking solutions has moved on to enhancing payment offerings for consumers.
Access to UPI signifies that customers of these banks can use any of the available UPI apps to make transactions digitally from their cooperative bank savings accounts. Cloud computing has been a game-changer as many cooperative banks have directly moved their applications to the cloud. By not utilizing legacy or traditional IT infrastructure, banks have seen more operational expenditure than capital expenditure.
Tech transformation can bring a threat of cyber attacks with it. Retaining high-level talent in the information technology domain is a challenge, especially in specialized services like cybersecurity, where it is best outsourced. A centralized pool with expert protection could help reduce vulnerability and ensure that systems are also updated.